Things to consider before you buy
An important step in the home buying journey is to prepare for the purchase and understand the requirements before you go ahead. Have you done the math and worked out your borrowing capacity using financial tools and calculators? Have you done your budget to determine whether you can meet the repayments? Have you got a valid pre-approval or conditional approval from your lender? It pays to be prepared and ready for the big step.
Here is a checklist for some of the key things you may want to cover off:
Approval in Principle – Confirm that you have a valid Approval in Principle for your loan.
Contract of Sale – Consider ensuring a copy of the Contract has been reviewed by a solicitor/conveyancer.
Cooling-off period – Talk to your solicitor to be sure you understand the conditions of the sale. Most states have a cooling off period, except for sales at auction which generally do not have any cooling off period.
Building and Pest Inspection – If you want to conduct any building and/or pest inspections, talk to your real estate agent to arrange an appropriate time for your professional inspector to conduct these inspections. This will ensure the property is in the condition as specified in the strata report and/or contract. A professional inspector can help identify hidden issues such as structural damage and termites – and determine how they may affect the property over time.
Zoning Changes and Proposed Developments: – Double-check your chosen property’s zoning and whether it could be impacted by proposed developments that may affect your property long-term. You may also need to identify the flood or fire risk for a property. This information can generally be found on the local Council website..
Cost of Your Insurance Premium: – The cost of your home insurance premium is based on your home's anticipated exposure to insured events, such as bushfire, storm, flood and theft. Factors that will affect your premium include your home's location, construction materials (e.g. double brick, timber), type of home (e.g. apartment, freestanding house, strata title,) year of construction, and security features, such as an alarm system.
Things you should know
Credit criteria, fees, charges, terms and conditions apply. This information has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.